A World First, Borrowers Mortgage Insurance (BMI)
Secure Your Customers Future
Taking Australian innovation to the world
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Mortgage Insurance Operates in Many Jurisdictions
BMI - an Australian Innovation
The Developers of BMI see an opportunity to capitalise on this innovation and roll the BMI product out to other country markets that already operate mortgage insurances.
Mortgage insurance is a common practice in Australia, New Zealand, Canada, Hong Kong, the Netherlands, and the United States, among others, though the extent of use and regulatory structure varies significantly by country. In some countries, it is mandatory for high-loan-to-value (LTV) mortgages (like Canada and Hong Kong), while in others, like Australia, it is not mandatory but often incentivised by lower regulatory capital requirements for lenders.
Here are some countries where mortgage insurance is widespread:
Australia
Mortgage insurance (Lenders Mortgage Insurance, LMI) is available to bridge the "deposit gap" for borrowers with lower down payments, making homeownership more accessible, according to the Reserve Bank of Australia.
Canada
Mortgage insurance is mandatory for high-LTV loans originated by regulated deposit-taking institutions.
United States
Government-sponsored enterprises require mortgage insurance on loans they purchase that have an LTV ratio greater than 80%.
Hong Kong
Similar to Canada, regulated lenders must insure high-LTV mortgages.
Netherlands
Mortgage insurance is extensively used in this country as well.
New Zealand
Mortgage insurance (Lenders Mortgage Insurance, LMI) is available to bridge the "deposit gap" for borrowers with lower down payments, making homeownership more accessible.
United Kingdom
No mandatory mortgage insurance requirement like the US and Australia. British banks manage the increased risk of lending to borrowers with small deposits by charging a higher interest rate.
Demand & Market Size
Housing Demand - Market Size
First Home Buyers
Estimated first home buyers forced out of the market by rising prices and lack of affordability
Retirees
Over 55’s looking to downsize and move into Land Lease Communities per annum 2022-32*
Housing Sites
Potential Affordable Housing Market sites coming online per annum 2022-32
BMI Potential Market
Loan Demand– ABS 12 months to Dec 2025
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Data from Digital Finance Analytics in 2019 reported a rise in LMI contracts of 25 per cent from 218,593 in 2019 to 273,473 in 2020.
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Digital Finance Analytics (DFA) reported in January 2019 a loan rejection rate of 40%* (ADIs Banks) and (nonbanks 20%) which equated to circa 320,000+ rejected applications.
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Helia the leading LMI provider reported in 2024 820,000 LMI Contracts with a value at loan origination of $235 billion. This was apportioned 78% owner occupier and 22 investor
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Loan applicants likely failed in the traditional loan process for several reasons, inability to provide sufficient verifiable income, insufficient deposit or a small discrepancy or dispute default on their credit file.
All Home Loans
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Avg Loan $691,000
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554,000 New Home Loans
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$383 Billion Market
Owner Occupier Home Loans
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Ave Loan $693,000
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337,000
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$234 Billion Market
First Home Loans
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Ave Loan $567,000
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119,000 New Home Loans
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$68 Billion market
Investor Home Buyers
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Ave Loan $689,000
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216,000 New Home Loans
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$149 Billion market
In Perspective
Why BMI Is More Than Just Insurance?
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